The Independent Power Producers (IPPs) have expressed strong opposition to the Public Utilities Regulatory Commission’s (PURC) decision to reduce electricity tariffs by 1.52 percent, labeling the move as unacceptable.
Dr. Elikplim Apetorgbor, President of the IPPs, warned that this reduction severely undermines the Electricity Company of Ghana’s (ECG) capacity to manage its debt restructuring. He emphasized that the power producers are currently operating in a fragile financial state and argued that they cannot absorb further revenue cuts when they are already struggling to service massive debts that represent operational costs rather than profit.
In contrast, the PURC has defended the downward review as a data-driven decision influenced by several positive economic indicators. Dr. Eric Obutey, the Director of Research and Corporate Affairs, explained that the reduction was made possible by a more favorable generation mix, with cheaper hydroelectric power now accounting for approximately 31.9 percent of production.
Additionally, the commission cited a 3.6 percent dip in inflation, a 5.9 percent decrease in fuel prices, and a relatively stable exchange rate as the primary drivers behind the price cut that took effect on December 1, 2023.
While electricity costs saw a marginal decline, the PURC’s fourth-quarter review concurrently implemented a 0.34 percent increase in water tariffs. This adjustment affects various consumer brackets, with residential water rates rising slightly from GH₵4.72 to GH₵4.74 per cubic meter.
Higher hikes were also applied to industrial consumers and sachet water producers, reflecting the commission’s attempt to balance the fluctuating costs of different utility services across the country.
